Markets🪩 Flashcards
What does competition mean?
refers to the number of business in a market
What is a Local Market
selling goods and services in a specific area
What is a Global Market
Selling goods and services overseas and worldwide
What is a Niche Market
When a business targets a small segment of the overall market that has very specific needs and wants
What is a Mass Market
When a business sells the whole market product to all consumers in the same way
What are Advantages of a Niche Market
(1) Charger higher prices because customers will pay for expertise
(2) Build string customer loyalty
(3) Lower level of competition as only one section of the market targeted
What are the disadvantages of a Niche Market?
potentially lower profit because market is smaller
What are the advantages of Mass Market?
(1) more potential sales as targeting a whole market
(2) Larger scale production- unit costs can be kept lower helping push price down
(3) Less risky as there are more customers to target
What are the disadvantages of Mass Market
(1) more competition
(2) operate larger scales meaning costs could be high
(3) products are harder to personalise
What is a Trade Market ?
Where a business sells good to other businesses also known as B2B (business to business)
What is a Consumer Market
A consumer market is made up of the general public who purchase the product for their own consumption
How do you calculate market share
Market Share = (Sales of one product/ Total Market Share) X 100
What is a Market Trend?
When business examine what is happening in the market over time
What is Market Segmentation
Process of diving a market into identifiable segments with similar wants and needs and characteristics
What is a demographic- market segmentation
Age/ Social Class/ Gender/ Income
e.g: Banks offer different accounts to different age groups
What is psychographic- market segmentation?
personality / emotionally based behaviours/ attitude / opinions / lifestyle
e.g: companies can target healthy customers who prioritise fitness
What is a geographic- market segmentation
regions in the country
e.g: sell coats to cold countries but more floral and thin tops to warmer countries
What is an advantage for a business to use Market Segmentation
(1) prevents products from being promoted to the wring group of customers, reducing wasted resources and costs
(2) Greater Knowledge about their customers will allow a business to vary its products to suit their needs better
(3) Customers feel their needs are being better targeted and this will develop customer loyalty to the business
What are the disadvantages for a business for using Market Segmentation?
(1) Targeting a market segment means the scales are limited by the segment size, so the segment size magbe too small to make a profit
(2) Market research will be needed to be carried out to identify the segment- expensive
(3) Splitting the market into groups means the market campaign needs to be done multiple different times in multiple different ways
What are the benefits of Market Segmentation to a customer?
(1) Recieve a product closer to their expectation
(2) can fit better with their budget and lifestyle
(3) feel their getting the value for their money
(4) because marketing is targeted, consumers are aware of new features of products
What is competition
Competition refers to the number of firms in the market and how they interact- the more firms the greater the competition
What is pure monopoly
Pure monopoly is when they have 100% of the market.
e.g: United Utilities is the only water supplier in greater manchester
What is Legal Monopoly
Legal Monoply is when the business has 25% or more of the market
What are the characteristics of a Monopoly
• high barrier of entry
• established monopoly usually have a strong brand recognition and customer loyalty. So new brand find it hard to attract customers away from well known brands
• monopolies often benefit from economies of scale meaning they can produce goods at a lower cost per unit than smaller competition
